The halal economy is on the cusp of transforming from a niche to an emerging sector. Encompassing halal foods, modest fashion, halal tourism, and more, the halal economy is being driven by a combination of factors, including government policy support, halal-consciousness amongst consumers, and halal integration by mainstream brands. As a result, the halal economy is expected to become a $9.50 trillion market by 2030. An accelerated growth scenario could even push the halal economy to $10.50 trillion by 2030.

With the global volatility seen over the past few years, and more so now from trade wars, product and geographic diversification is key to driving resilience and sustainable growth. Companies could increasingly broaden their portfolio to halal solutions to build new revenue streams and capture untapped markets across Southeast Asia, the Gulf Cooperation Council (GCC) and beyond. This thought leadership piece captures corporate growth strategies and diversification growth opportunities for halal foods, halal pharmaceuticals, Islamic finance, halal tourism, modest fashion, and halal cosmetics.

Countries have also been benchmarked for their halal economy competitiveness with regards to halal demand potential, policy and regulatory frameworks, and halal supply chain and logistics strength. Countries assessed as part of the scope include Saudi Arabia, Nigeria, Malaysia, and the UAE, providing a bird's-eye view of country-specific halal competitiveness scorecards. Saudi Arabia, for example, is actively promoting the halal economy as part of its efforts to diversify beyond oil. Nigeria, on the other hand, has a longer way to go in improving its halal certification and regulation ecosystem.

This halal economy thought leadership piece has been designed to give businesses an overview of halal economy trends as well as market potential, with specific sub-sectoral insights. Country scorecards provide a landscape of the halal ecosystem before framing go-to-market strategies.

Key Questions Answered:
•     How are governments actively supporting the halal economy through policy support?
•     How can the halal economy integrate with the mainstream economy?
•     What are the key growth drivers of halal tourism compared to halal foods?
•     Does modest fashion have a strong outlook for market growth?
•     What are some best practices/case examples when expanding into halal cosmetics?
•     How does Saudi Arabia's halal economy demand potential compare with that of UAE?
•     What opportunities do Asian countries present for the halal economy?
•     What are some key, strong near-term growth opportunities in the halal economy?

Author: Neha Anna Thomas